State of the Left - December 11

01 December 2011

State of the Left - December 2011

The collapse of the Spanish socialist government adds to a familiar casualty
list: European social democrats have now lost 19 out of 24 elections (not including Latvia) since the fall of Lehman brothers.

It is evident, however, that centre-right governments across Europe are also
the subject of increasing public anger in relation to crippling levels of
unemployment, squeezed living standards, the eurozone crisis and unstable debt
and deficits.

But as the political situation becomes more volatile, the room for manoeuvre is
narrowing. Centre-left parties now need to sharpen their political alternative,
moving beyond exposing the social costs of ill-timed and ideologically driven
retrenchment: this means, first and foremost, taking tough decisions on how to
combine social justice with a clear commitment to fiscal responsibility; it
means spelling out what social democracy stands for with less money; it means,
paraphrasing R.H. Tawney, moving on from demanding too little and offering too
much.

Lessons should be learned from the PSOE defeat in Spain, where the party
tentatively embarked on a reform path in the good times before performing a
series of self-defeating policy u-turns when the crisis struck. New prime
minister Mariano Rajoy will now pick up this agenda with a conservative
hand.

In Germany, many believe that the robustness of the economy is in no small
measure a credit to the reforms initiated by social democrats while in office
from 1998 to 2009. Yet, with rising poll ratings, there is now a danger that the
comfort of opposition will dull the party’s appetite for tough decisions. It
remains to be seen how this will play out during the upcoming SPD congress were
top-level taxation and pensions entitlements will be high on the agenda.

Finally, fiscal questions continue to dominate the news in the UK. Chancellor
George Osborne’s promise to eliminate the structural deficit by 2015 has proved
woefully unrealistic, calling into question his credibility. Labour now has a
fresh opportunity to improve its poor polling and reclaim the mantle of economic
competence.

Policy Network Political Observers

Reporting monthly from across
the world, "State of the left" features both regular columists and guest
contributors.

We are
proud to welcome our new regular UK contributor, Hopi Sen, who will be replacing
John McTernan. We would like to thank John for his insightful contributions and
wish him the best of luck in his new role assisting the Australian Labor
Party.

"The PSOE
registered its worst result since the re-introduction of democracy in 1978 with
just 28.7% of the vote. A double U-turn on structural reform saw the party evade
difficult leadership decisions and ultimately lose its political and economic
credibility." BY JONÁS FERNÁNDEZ ÁLVAREZ

"The
eurozone crisis is politically useful for both Osborne and Balls...Europe offers
what Osborne calls “An explanation, not an excuse” for Britain’s faltering
economy. Look, says the Government, things might be bad, but when even Germany
can’t sell Bonds, we’re a safe haven." BY HOPI SEN

"It
is hard to imagine any of the ‘stones’ running a campaign with a programme of
large tax increases, longer employment benefits, and higher pension levels while
the euro-zone is wasting away...The next problem of social democratic
credibility would be just around the corner." BY MICHAEL MIEBACH

"Politics
is to want” were the famous words of Olof Palme. "Politics is to choose” Pär
Nuder often says, stressing the technocratic, economically competent side of the
equation. Prioritising in a reality of limited resources is one of the most
important currencies in politics." BY KATRINE KIELOS

"The
fact that conservative Republicans would rally, if only temporarily, behind the
bloviating Gingrich, a thrice-married former speaker of the House and a former
lobbyist, is a sign of desperation. Gingrich used his new status...to denounce
child labour laws and call for school janitors to be fired and replaced by poor
school-children." BY MICHAEL LIND

"There
remains an overall orientation towards both Europe and the outside world, but
the balance of cost and reward, duties and responsibilities is controlled
stricter than ever. The big question is to what extent the eurocrisis will fit
into the new climate of conditional solidarity." BY RENÉ CUPERUS

"Stumbling
left-wing partnerships and a Cold War drama are preoccupying the social
democrats while the rest of Europe scrambles to solve the euro crisis. Having to
horse-trade...has made the first 2 months of government a mixed experience for
Helle Thorning-Schmidt" BY KRISTIAN MADSEN

"Despite
its strong policy programme, Labor still struggles to convince the electorate of
its values. If the ‘what’ and ‘how’ of the government are clear, the ‘why’ is
yet to emerge...to win back the public, Labor must lay out its progressive case
for governing." BY DAVID HETHERINGTON

"Rousseff
knows that transparency and ethics provide an important moral basis for
deepening economic and social reforms. She knows that if she is to move forward
on the latter, she cannot fail on the former." BY FRANCISCO JAVIER DÍAZ &
ROBERT FUNK